2009 News Releases

• Contact between clients and advisers has risen sharply
• Most report taking action to rebalance portfolios
• Though they foresee a market rebound, clients worry about their children

BOSTON – A John Hancock Funds survey of more than 300 top financial advisers has found that bonds between clients and advisers have been reinforced as a result of the market volatility that began in 2008. Advisers report that their contact with clients is up sharply, and that more than half of their clients are actively investing or working on rebalancing their portfolios. And advisers expect to stay busy:   most believe overwhelmingly that they will gain clients over the next 12 months, and overall they anticipate that markets will improve by the end of 2010.

“Our survey findings reflect a deeper connection between advisers and their clients than what has been portrayed in many media accounts. We’ve found, in fact, that advisers take their relationships with clients very personally, and are responding appropriately to their clients’ most pressing concerns,” said Keith F. Harstein, President & CEO, John Hancock Funds.   

According to the survey, 91 percent of advisers said that market volatility was one of their clients’ top three concerns since 2009 began; the two other worries most frequently cited were 401(k) balances and taxes. Though they are preoccupied with these issues, clients apparently are neither traumatized nor sitting still. Nearly 46 percent of advisers rate their clients’ emotional attitude as “healthy,” and report that clients are selectively rebalancing their holdings. Forty percent say clients are upset by the volatility but are not selling, while 4 percent say their clients are opportunistic and ready to invest. The advisers report increased activity levels for themselves as well:   almost 65 percent say their client contact has gone up substantially since the market collapse in the autumn of 2008. 

Most advisers think that brighter days lie ahead. About 46 percent of the advisers surveyed believe the markets will improve during 2009, while another 40 percent say the markets will rally by the end of next year. That same sense of optimism carries over into the advisers’ views of their own businesses:  more than 89 percent said they expect their business to improve over the next year.

While many press articles have suggested that client – adviser relationships came under pressure as the recession took hold, the surveyed advisers believe their clients are loyal to them. Thirty-five percent of advisers say that between 80 and 100 percent of their clients are “loyal” to them, as defined by the phrase “the clients wouldn’t think of leaving…and give [the adviser] more assets and referrals,” while 37 percent think that between 60 and 80 percent of their clients are loyal to them.

Regarding client behavior and outlook, other John Hancock survey findings included:

• Clients’ chief worry is that their children “won’t have it as well” as they did. They are also concerned about affording college educations.
• Key priorities of clients over the next 12 months are:  rebalancing of portfolios, planning for retirement, increasing savings and improving budgets.
• Clients appear more inclined to consider more conservative types of investments, including bonds, variable annuities, and fixed income mutual funds.

Profile of the producers who responded to the John Hancock survey

• Nearly 43 percent have been in the financial advisory business between ten and 20 years. Nearly 40 percent have been in the business for more than 20 years.
• Independent broker-dealers account for 42 percent of respondents, while almost 38 percent work for wirehouses, and 11 percent for regional firms.
• In terms of assets under management, 26 percent have more than $150 million under management, approximately 19 percent report assets of $100 – 150 million, and the same percentage report assets of $25 – 50 million.
• In terms of average size of client accounts, 38 percent say their average account is between $250,000 - $500,000, 20 percent say the average is below $250,000, and nearly 20 percent say the average account size is $500,000 - $750,000.

About John Hancock Funds
The Boston-based mutual fund business unit of John Hancock Financial, John Hancock Funds manages more than $42.9 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors at June 30, 2009.

About John Hancock Financial and Manulife Financial Corporation
John Hancock Financial is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and in most of Asia, and primarily as John Hancock in the United States, Manulife Financial Corporation offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$421 billion (US$362 billion) at June 30, 2009.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.

The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers a broad range of financial products and services, including life insurance, fixed and variable annuities, fixed products, mutual funds, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at www.johnhancock.com.

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PR 2009 -- 61

Contact:     
Beth McGoldrick
(617) 663-4751
bmcgoldrick@jhancock.com